Consumer – Recovery Ahead?

In 2023 the consumer sector M&A market experienced a year-on-year 7% drop in deal volume and a 31% decline in deal values. Unprecedented, once-in-a-generation macroeconomic factors such as the war in Ukraine, stubbornly high inflation, raised interest rates and increased scrutiny from regulators dampened activity significantly. While not unique to the sector, the impact of declining real incomes and consequent reduction in discretionary spend had a major impact.

Market characteristics

Divestments and carve outs remained popular as corporates looked to cut costs and simplify their structures. ESG and tech investments were still seen as key to future proofing businesses and protecting portfolios. Mike Ashley's Frasers Group acquired a 19% stake in AO world, the UK's biggest seller of domestic appliances. Companies wanting to scale up their physical footprint at pace took advantage of the challenging retail market as seen with B&M European Value Retail acquiring 51